Company Overview
Arcadia Biosciences, Inc. operates as a specialized entity within the consumer defensive sector, specifically focusing on the packaged foods industry, where it develops and markets plant-based food and beverage products across the United States. The company's core operational strategy involves creating crop improvements, with a primary concentration on wheat, aimed at enhancing farm economics through improved field performance and increased value as food ingredients. The scale of the organization is reflected in a market capitalization of $3.21M and an annual revenue of $5.17M, supported by a workforce of 9 employees. These financial dimensions indicate that the company functions as a micro-cap entity with limited operational breadth, suggesting a niche position where revenue generation is highly concentrated within its specific agricultural research and product development activities.
Financial Health
The company reported a revenue of $5.17M for the trailing twelve months, while recording a net income of $-5,040,000 and an EBITDA of $-5,949,000, revealing a significant structural cost burden where operating expenses substantially outpace top-line growth. The free cash flow stands at $-399,000, which indicates that the company is currently burning cash rather than generating liquidity, thereby limiting its immediate financial flexibility for capital expenditures or unexpected market shifts. Margin analysis highlights a gross margin of 40.4%, which suggests a relatively efficient production cost structure for its inputs, yet this is offset by an operating margin of -88.5% and a profit margin of -98.0%, indicating that overhead costs and general expenses are consuming the vast majority of revenue before profit realization. Regarding leverage, the company holds $5.88M in cash against N/A for total debt, resulting in a debt-to-equity ratio of N/A, which implies a balance sheet funded primarily by equity and cash reserves rather than financial liabilities. Liquidity is supported by a current ratio of 3.67, signifying that the company possesses more than three times the current assets necessary to cover its short-term obligations without immediate distress. Return on equity is recorded at -64.6% and return on assets at -31.5%, metrics that demonstrate management is currently utilizing the capital base to generate losses rather than positive returns on the invested equity or assets.
Valuation Assessment
Valuation multiples for the stock present a complex picture, with a P/E ratio (TTM) of N/A and a forward P/E of -1.15, implying that the market is pricing in a future earnings recovery rather than current profitability. The price-to-book ratio is 0.37, suggesting that the market values the company at less than one-third of its book value, which often indicates a market discount applied to high-risk or unprofitable biotechnology firms. Alternative valuation metrics include a price-to-sales ratio of 0.62 and an EV/EBITDA of 0.64, figures that suggest the market is willing to pay a moderate premium relative to sales despite the lack of earnings, potentially valuing future intellectual property or market share potential. The 52-week high is $6.71 and the 52-week low is $1.46, meaning the current trading price sits in a range that reflects significant volatility and uncertainty regarding the asset's immediate future trajectory. The beta value of 0.61 indicates that the stock exhibits lower volatility relative to the broader market, moving with less intensity than the overall index despite its high-risk financial profile.
Growth & Income
The company experienced a revenue growth of -15.3% year-over-year, while earnings growth is listed as N/A, indicating a contraction in top-line sales without the ability to calculate earnings expansion due to negative income. Since the earnings growth rate cannot be compared to revenue growth in a traditional expansionary sense, the decline in revenue suggests a shrinking market share or a contraction in demand for its specific plant-based products. Regarding income distribution, the company does not pay dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, which confirms that all available earnings, even the negative ones, are not distributed to shareholders but are retained internally. Consequently, the overall growth and income profile is characterized by negative revenue momentum and a total lack of dividend income, reflecting an early-stage or distressed growth phase where capital preservation is prioritized over shareholder payouts.